Manav Vikas Bahuuddeshiya Gramin Seva Sanstha Vs CIT (Exemptions) (Bombay High Court)
The petition before the Bombay High Court challenged an order dated 25 July 2024 passed by the Commissioner of Income Tax (Exemptions), which refused to condone a delay of 687 days in filing the audit report in Form 10B for the accounting years 2016–17. The audit report had been filed on 18 August 2018. The reason cited for the delay was that the petitioner’s Chartered Accountant was unaware of the newly introduced online filing system, and the lapse occurred due to unintentional oversight. The respondent authority rejected this explanation, stating that it did not constitute a genuine reason for condonation under Section 119(2)(b) of the Income Tax Act.
Read Bombay SC Judgment/Orders in this case:
SC Upholds Condonation of Form 10B Delay as delay was Due to Honest Oversight by CA
SC Upholds Delay Condonation in Form 10B Filing as Audit Report Was Already Submitted
Upon hearing both parties, the Court observed that the application for condonation had already been filed and that an honest explanation was placed on record. It further noted that the audit report had in fact been submitted, and non-condonation would lead to denial of exemption benefits. The Court took into account that the petitioner is a trust engaged in providing medical aid to underprivileged sections and referred to its earlier decision in Al Jamia Mohammediyah Education Society Vs. Commissioner of Income Tax (Exemptions) Mumbai.
